Background
An experienced builder and franchise owner of a national construction group planned a residential development on the Kapiti Coast comprising three freestanding homes and one duplex.
Challenges
Securing development finance proved difficult due to the project’s regional location, with many lenders unwilling to fund projects outside of major metropolitan areas.
Mitigants
At Avanti Finance, we assess the overall strength of the borrower and the project, not just the geographical location. In this case, the application proved to be a well-presented lending opportunity:
- The applicant had extensive construction experience and a proven track record of delivery.
- The project had a conservative 63% LVR ratio, providing a solid equity position.
- The applicant’s financial position gave us confidence in the overall serviceability.
Solution
We provided a $3.2 million development facility, enabling the construction of three standalone homes and one duplex.
LOAN AMOUNT
$3,2000,000
TERM
12 months
INTEREST RATE
7.50% p.a.
LVR
63%
“Our Property Development Loan supports the full development lifecycle, from land acquisition and pre-development funding, through to construction, and post-completion solutions such as residual stock or long-term hold.
What sets us apart is our ability to provide seamless funding across all stages of a development project, often without the need for presales. We can also support developments outside of main centres and offer flexible structures, including higher LVRs than other lenders for well-located projects.
If you’d like to workshop a client scenario, get in touch with your Avanti BDM.”
Paul Rolton
BDM, Lower North Island